Bitcoin will chart down, opening the door for KAS, MKR, AR and rally.

Bitcoin (BTC) has been in a sideways price action for months. The bears pushed the price below the range, but failed to sustain the July 8 breakout, indicating that selling at the lows will dry up. That attracted buying from aggressive bulls who wanted to keep the price in the range for some time.

Data from Farside Investors showed $310 million flowed into the U.S.-based bitcoin exchange on July 12, the largest inflow since June 5. The earnings show that market participants are building positions as they believe it is a short-term bottom. place.

Bitcoin's recovery is expected to improve sentiment and boost cryptocurrency markets. Select altcoins that approach or break overhead resistance levels may lead the rally.

What critical protection levels should be maintained for Bitcoin and altcoin recovery to accelerate? Let's study the top 5 currencies that look strong on the charts.

Bitcoin price analysis

Bitcoin breached the $56,552 support on July 12 and rose above the 20-day simple moving average ($59,422) on July 14.

A positive divergence on the Relative Strength Index (RSI) indicates that the selling pressure is decreasing. If buyers hold the price above the 20-day SMA, chances of rallying towards the critical level of $64,602 will increase.

However, the bears will not surrender without a fight. They try to defend the 20-day SMA and move the price below it. If you manage to do that, the BTC/USDT pair can retest the $56,552 support.

The bulls have pushed the price above the low line on the 4-hour chart but are struggling to sustain higher levels. This indicates that the bears are trying to catch the aggressive bulls by lowering the price.

Any pullback could find support at the 20-SMA. If the price bounces back from the 20-SMA, it shows a change in sentiment from selling on rallies to buying on dips. That raises the rally to $64,602.

Conversely, if the bears move below the moving averages, it indicates that they are holding on to the order. The pair could drop to $56,552 and eventually to $53,485.

Caspa cost analysis

Caspa (KAS) bounced back from the 50-day SMA ($0.16) on July 12, indicating that the bulls will defend the level.

Both moving averages are trending up, and the RSI is close to the midpoint, suggesting a slight advantage for the bulls. If the price rises above the 20-day SMA ($0.17), the KAS/USD pair may increase momentum and reach the upside resistance at $0.20.

This optimism will be rejected in the near term if the price declines significantly and falls below the 50-day SMA. That could attract selling, which would pull the pair to $0.14.

The price has once again fallen below the defense line, indicating that the bears are maintaining the level strongly. If the pair recovers from the moving averages again, the bulls will try to push the price above the lower line. If you can pull through, the pair could go up to $0.18.

Instead, if the price continues lower and breaks below the moving averages, it indicates that the advantage is tilted to the bears. Then the pair could drop to $0.16.

Producer price analysis

Maker (MKR) rallied sharply from the $2,000 level on July 8, indicating aggressive buying at lower levels.

The moving averages are on the verge of completing a bullish crossover, and the RSI is in positive territory, indicating that the bulls are dominant. If buyers support the price above $2,730, the MKR/USDT pair may rise to $3,234, a strong challenge for the bears.

On the downside, the bears should sink the price below the moving averages to catch aggressive bulls by taking the pair to $2,000.

The rally on the 4-hour chart has pushed the RSI into overbought territory, indicating that a reversal may be around the corner. The pair may find support in the $2,650 to $2,730 zone. If the price recovers from this zone, the bulls will try to push the pair towards $3,000.

Conversely, if the price drops significantly and breaks below the support zone, it indicates that the bears are moving at a higher level. The pair may then slide towards the 20-SMA, an important level to watch out for. If this support is broken, the next stop could be the 50-SMA.

Related: Why is the crypto market booming today?

Arweave price analysis

Arwave (AR) has been trading in a wide range between $22 and $49.55 for the past several weeks. In a well-known range, traders buy near the support and sell near the resistance.

The decline of $22 reached the 20-day SMA ($25), which is an important level to monitor. If the price drops significantly from the 20-day SMA, the bears will make another attempt to dip the AR/USDT pair below $22. If they manage to do that, the pair could start down to $16.

Conversely, if buyers push the price above the 20-day SMA, the pair may rally to the 50-day SMA ($31). This level could again act as a barrier, but if the bulls prevail, the rally could reach $37.

The 4-hour chart shows that the pair is rising in a bullish channel pattern. Both moving averages are starting to climb, and the RSI is in positive territory, indicating that the bulls have an edge. If buyers push the price above the channel, the momentum could increase further, which could take the pair to $30.

The first sign of weakness would be a break and close below the 20-SMA. That could indicate that the pair may remain in the channel for some time.

Notcoin protocol value analysis

Notcoin (NOT) is trying to break the 20-day SMA ($0.014), which indicates that the bulls are trying to turn the level into support.

The RSI near the midpoint indicates that the selling pressure is decreasing. The NOT/USDT pair may rise above $0.017 and close to $0.021. If this level is crossed, the rally may extend to $0.03.

Contrary to this assumption, if the price declines and breaks below the 20-day SMA, it indicates that the bears are in control. The pair may fall to critical support at $0.009.

The pair is trying to form a reversal head and shoulders pattern on the 4-hour chart, which will be completed by a break and close above the neckline at $0.018. If that happens, the pair may move higher towards $0.022 and then towards the $0.025 pattern target.

If the bears want to prevent the decline, they need to touch and hold the price below the 50-SMA. If they do that, the pair could slide towards $0.013 and eventually $0.010. Such a deep decline destroys the reversal pattern.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.